CS-30 CS Kasama-shi Dai-san Power Plant

13 th FP（ended December 2023）

Presentation Materials
Asset Manager
Canadian Solar Asset management K.K.

Canadian Solar Infrastructure Fund, Inc.

Table of Contents
1. Financial Highlights ・・・・・・・・・・・・・・

2

ESG Initiatives (UN PRI / ESG Report) ・・・・・・・・・・・

26

Financial Highlights of 13th FP ・・・・・・・・・・・・・・・

3

ESG Initiatives (TCFD・SFDR) ・・・・・・・・・・・・・・・

27

Analysis of Operating Revenues in the 13th FP・・・・・・・

4

ESG Initiatives (Green Finance) ・・・・・・・・・・・・・・

28

Portfolio Power Generation Performance ・・・・・・・・・・

5

AUM Snapshot ・・・・・・・・・・・・・・・・・・・・・・

6

Appendix・・・・・・・・・・・・・・・・・・・・ 29

Portfolio Diversification・・・・・・・・・・・・・・・・・・・

7

Canadian Solar Group’s Global Operations（1） ・・・・・

30

Asset List ・・・・・・・・・・・・・・・・・・・・・・・・・

8

Canadian Solar Group’s Global Operations （2） ・・・・・

31

Impact of curtailment and installing online curtailment
controller・・・・・・・・・・・・・・・・・・・・・・・・・

10

Value Creation using the Sponsor Group’s Vertically Integrated
Model (manufacturer, developer, AM・O&M) ・・・・・・・・

32

Output Curtailment Outlook・・・・・・・・・・・・・・・・

11

Organizational Structure・・・・・・・・・・・・・・・・・・

33

Unit Price Performance ・・・・・・・・・・・・・・・・・・

12

Asset List– Operational Result for 12th FP・・・・・・・・・・

34

ESG Initiatives (Environment) ・・・・・・・・・・・・・・・

36

13

ESG Initiatives (Social)・・・・・・・・・・・・・・・・・・・

37

・・・・・・・・・

14

ESG Initiatives (Governance)・・・・・・・・・・・・・・・・

38

Historical and Forecasted Dividend・・・・・・・・・・・・・

15

Status of Unitholders ・・・・・・・・・・・・・・・・・・・

39

Balance Sheet for 13th FP・・・・・・・・・・・・・・・・・・

40
41

2. Earnings Forecast・・・・・・・・・・・・・・・
14th, 15th & 16th FP Earnings Forecast

4. Management Policy・・・・・・・・・・・・・・

16

Statement of Income for 13th FP ・・・・・・・・・・・・・・
Portfolio Assets ・・・・・・・・・・・・・・・・・・・・・・

42

Aim for Further Diffusion of Renewable Energy drawing on
Positive Stance of the Japanese Government・・・・・・・・

17

Distributions based on stable cash flow under the FIT
system・・・・・・・・・・・・・・・・・・・・・・・・・・・

45

External Growth Strategy（Pipeline） ・・・・・・・・・・・

18

Cash Management Policy・・・・・・・・・・・・・・・・・・

46

Abundant Pipeline Centered on Sponsor-Developed Assets
Assisting CSIF’s Growth ・・・・・・・・・・・・・・・・・・

19

CS Azuma Kofuji Power Plant, the largest Sponsor-developed
project, has been transferred to the Bridge Fund・・・・・・

20

Long-term Profitability Schematics・・・・・・・・・・・・・・ 47
Operating revenue / expenditure structure for long-term andstable forecasts・・・・・・・・・・・・・・・・・・・・・・

48

Overview of curtailment・・・・・・・・・・・・・・・・・・

49

Expand pipeline by utilizing the development capabilities of the21
sponsor group・・・・・・・・・・・・・・・・・・・・・・・

Capacity increase of cross-regional interconnection lines
to reduce curtailment・・・・・・・・・・・・・・・・・・・

50

Diversification of sourcing channels and enhancing theflexibility to grow・・・・・・・・・・・・・・・・・・・・・・

22

Main Points of the Revised Renewable Energy Act（1）・・・

51

Main Points of the Revised Renewable Energy Act（2）・・・

52

Initiatives for Internal Growth・・・・・・・・・・・・・・・

23

Main Points of the Revised Renewable Energy Act（3）・・・

53

Debt Profile (1) ・・・・・・・・・・・・・・・・・・・・・・

24

Debt Profile（2） ・・・・・・・・・・・・・・・・・・・・・

25Disclaimer・・・・・・・・・・・・・・・・・・・・・・・・・

54

1

1. Financial Highlights

2

Financial highlights of 13 th FP◼

Although output curtailment was imposed during the 13th FP, actual energy output surpassed that on initial
forecast. As a result, operation revenues amounted to JPY4,537Mn, an increase by JPY65Mn compared to initial
forecast◼

As operating expenses were allocated towards reducing repairment costs and depreciation expenses as well as
allocating non-operating expenses towards reducing investment unit issuance fees as well as interest payable anddebt costs, net income amounted to JPY1,385Mn (up JPY 238Mn compared to initial estimates). As a result, DPU
will be JPY3,067 (up JPY528 from initial forecast)Statement of Income
Data(million yen)

12th FP
Actual13th FP (ended Dec. 2023)
Forecast@Aug.17,2023

ActualIncrease /(Decrease)(vs Forecast)

Operating revenues

3,452

4,472

4,537

65

Operating income

1,156

1,665

1,846

181

Income before income taxes

1,003

1,148

1,386

238

Net income

1,003

1,147

1,385

238

Distribution per unit
(including distributions in excessof earnings)

3,750 yen

3,750 yen

3,750 yen-

Distributions per unit
(excluding distributions in excessof earnings)

2,595 yen

2,539 yen

3,067 yen

528 yenDistributions in excess of earnings
per unit

1,155 yen

1,211 yen

683 yen(528) Yen

Variance (vs. forecast)
Operatingrevenues

Operatingexpenses

Increase in variable
rent

65

Decrease in;
Repairment costs,
etc.

76

Depreciation

39

Reduction of
Investment unit
issuance expenses

25

Nonoperating
incomes andDecrease in financeexpensescost includinginterest expenses

313Analysis of Operating Revenues in the 13th FP◼ Against the backdrop of stable power generation during the interim of the 13th FP and a sharp decrease inestimated variable rent loss due to curtailment compared the 12th FP, actual rent income amounted to
JPY4,537Mn up JPY65Mn compared to initial forecast at the beginning of the period.

Transition of rent income for the 13th FP (period-ended Dec. 2023)
Million yen

5,000

132

4,500

Rent increase
based onassumed full
power
generation

4,000

99

32

Estimatedvariable rent
losses bycurtailment

Settlement
amount by proxy
output curtailment(fixed amount)

4,472

4,537

期初予想賃料
Initialexpected rent

実績賃料
Actual
rent

3,500

3,000

(Note) Proxy output curtailment means that when the actual output curtailment is carried out, the online control operator performs the output
curtailment that should be performed by the offline control operator instead, and under the law, the online control operator is deemed to havegenerated and supplied the electricity, and the online control operator will receive the adjustment amount at a later date, which will be calculated
based on the consideration at the procurement price applicable to there own power generation facilities.

4Portfolio Power Generation Performance◼ Actual energy output in the 13th FP was almost the same level as the initial forecast, due to the stable
weather throughout the period, and the impact of curtailment was limited.
◼ 13th FP actual energy output ÷ projected energy output = 100.81%(11th FP (corresponding period of the previous year): 96.69%)◼ 13th Fiscal Period（July 2023～December 2023）
Projected energy output(MWｈ)30,00025,00020,00015,00010,0005,000
0106.8%
26,07024,403

97.5%
26,641

25,974

Actual energy output
96.8%
22,21521,503100.7%

105.4%

21,24421,09917,582

16,679

7Jul.
月

8
月
Aug.

9Sep.
月

10
月
Oct.

11
月
Nov.

69.5%

76.7%

97.8%
14,541

14,22312月
Dec.

◼ 12th Fiscal Period（January 2023～June 2023）
Projected energy output(MWｈ)25,000102.3%

20,00015,00012,251

12,526

99.5%

Actual energy output
93.1%
17,85013,477

13,405

20,834
16,61920,756
14,481

15,91599.7%
17,456

17,40910,000
5,000
0

Jan.
1月

Feb.
2月

Mar.
3月

Apr.
4月

May
5月

Jun.
6月

5

AUM Snapshot◼ A summary of AUM as of the end of 13th FP. The fund has 31 power plants with total panel output of
226 MW and the total acquisition price is approximately ¥97Bn<Portfolio as of the end of 13 th FP>

31 projects

Total
acquisition
price as of theend of 13th FP

226.4 MW

Total valuation
price(Note) as ofthe end of 13thFP# of projects

Panel output
of AUM◼ Historical valuation and book value(after depreciation)
Valuation price

90.00¥97.0 Bn

79.03

80.00
70.00

40.00

77.17 76.36 75.51

33.86

35.96
42.07 42.67

30.00

46.47

Second PO

13 projects / 72.7MW

3 projects / 30.3MW

2 projects / 60.9MW

69.59

45.35

20.00 30.44 31.11（bn yen）

Third PO + 13th FP acquisitionsFirst PO

85.39

45.57

◼ Track Record of Consistent External Growth and Target of asset size (Acquisition price basis)
IPO acquisitions

88.75
74.87

73.86 72.41
48.89
71.03
50.02 51.49
49.58
75.27
47.09

60.00
50.00

¥88.7 Bn

Book value

Third PO

5 projects / 41.4MW/¥16.7bn

13th FP acquisitions

1 project / 1.1MW/¥0.2bn

17.0
30.5
0.8

4.5

1.3

11.5

200.0
80.0

0.9
30.1
上場時
2017年10月

IPO(Oct. 2017)

31.0
第2期
（2018年6月）

42.6
第3期（2018年12月）

43.9
第4期
（2019年6月）

48.5
第5期（2019年12月）

48.5
第6期
（2020年6月）

80.0

80.0

80.0

80.0

97.0

49.4
第7期
（2020年12月）

第8期（2021年6月）

第9期（2021年12月）

第10期（2022年6月）

第11期（2022年12月）

第12期（2023年6月）

第13期（2023年12月）

End of
2nd FP

End of
3rd FP

End of
4th FP

End of
5th FP

End of
6th FP

End of
7th FP

End of
8th FP

End of
9th FP

End of10th FPEnd of11th FPEnd of12th FPEnd of13th FP(June. 2018)(Dec. 2018)(June. 2019)(Dec. 2019)(June. 2020)(Dec. 2020)(June. 2021)(Dec. 2021)(June. 2022)(Dec. 2022)(June. 2023)(Dec. 2023)

Mid-term
Target（note）(Note): The term “valuation price ”refers to the intermediate value of power plants whose property numbers in the Asset List on page 8-9 are S-01 through S-18 estimated by CSIF, based on the valuationsof power plants at the end of Dec. 2023 calculated by PricewaterhouseCoopers Sustainability LLC. As for power plants S-19 through S-30, “valuation price” is the median value calculated by
Kroll, LLC at the end of Dec. 2023, and for power plant S-31, “valuation price ” is estimated by CSIF, based on the valuations of power plants at the end of Dec. 2023 calculated by Japan Real Estate
Institute.

66Portfolio Diversification◼
◼

Since the IPO, CSIF has reduced its concentration risk of assets under management byconsistently acquiring PV projects.
The remaining FIT period is also diversified over a long period of time, aiming to build aportfolio that will support stable cash flows in the future.
Changes in portfolio income diversification (panel output basis)
End of 12th FP（ended June. 2023）

At IPO

TBU

3.5%

65.6%

5.4%

End of 13th FP（ended Dec. 2023）

23.6%

29.0%

21.1%

14.8% 25.9%

12.1%
CS Mashiki-machi PP
CS Minami Shimabara-shi PP (east & west)

CS Hiji-machi Dai-ni PP
CS Mashiki-machi PP

CS Hiji-machi Dai-ni PP
CS Mashiki-machi PP

CS Hiji-machi PP

CS Daisen-cho PP (A & B)

CS Daisen-cho PP (A & B)

Remaining FIT period of CSIF portfolio (panel output basis)
（MW）

100.0
80.0

¥40/kWh
40円/kWh
32円/kWh¥32/kWh
21円/kWh¥21/kWh¥36/kWh
36円/kWh
24円/kWh¥24/kWh¥18/kWh
18円/kWh

Projects reaching FIT expiration after 2034
6.0

60.0

0.9
2.3

51.2

40.0
20.0
0.0
2023

FIT period: 11 years

53.4
1.2

6.3
11.9

2034

2035

3.0
1.7
2036

27.3
2037

12.9
2038

2039

21.0
22.2
3.3
2040

1.1
2041

2042

7

Asset List – Power Plant Data, Valuation and etc.
No.

Project nameLocation

AcquisitionPrice(million yen)

Valuation Price(million yen)
(Note)

Portfolio%

Panel
Output(kW)

FIT Price(yen)Electric
Power
service area

Curtailment
rules

Onlinecurtailment
system status

S-01

CS Shibushi-shi Power Plant

Shibushi-shi,
Kagoshima

540

432

0.5%

1,224.00

40

Kyushu30-day rule

○

S-02

CS Isa-shi Power Plant

Isa-shi, Kagoshima

372

285

0.3%

931.7740

Kyushu30-day rule

○

S-03

CS Kasama-shi Power Plant

Kasama-shi, Ibaraki

907

818

0.9%

2,127.84

40

Tokyo

30-day rule

S-04

CS Isa-shi Dai-ni Power Plant

Isa-shi, Kagoshima

778

591

0.7%

2,013.99

36

Kyushu30-day rule

○

S-05

CS Yusui-cho Power Plant

Aira-gun,Kagoshima

670

510

0.6%

1,749.30

36

Kyushu30-day rule

○

S-06

CS Isa-shi Dai-san Power Plant Isa-shi, Kagoshima

949

737

0.8%

2,225.08

40

Kyushu30-day rule

○

S-07

CS Kasama-shi Dai-ni Power
Plant

Kasama-shi, Ibaraki

850

705

0.8%

2,103.75

40

Tokyo

30-day rule

S-08

CS Hiji-machi Power Plant

Hayami-gun, Oita

1,029

794

0.9%

2,574.99

36

Kyushu30-day rule

○

989

772

0.9%

2,347.80

40

Kyushu30-day rule

○

1,733

1,418

1.6%

3,928.86

40

Kyushu30-day rule

○

1,018

903

1.0%

2,448.60

32

Tokyo

30-day rule

514

452

0.5%

1,336.32

36

Tokyo

30-day rule

19,751

18,336

20.7%

47,692.62

36

Kyushu30-day rule

246

209

0.2%

636.0032

Tohoku30-day rule

746

608

0.7%

1,930.50

32

Chugoku

30-day rule

757

676

0.8%

2,124.20

32

Chubu

360-hour rule

Ashikita-gun,
Kumamoto
Shimabara-shi,
NagasakiChichibu-gun,
SaitamaTagata-gun,Shizuoka
Kamimashiki-gun,
Kumamoto
Koriyama-shi,
Fukushima
Tsuyama-shi,
Okayama

S-09

CS Ashikita-machi Power Plant

S-10

CS Minamishimabara-shi
Power Plant (East & West)

S-11

CS Minano-machi Power Plant

S-12

CS Kannami-cho Power Plant

S-13

CS Mashiki-machi Power Plant

S-14

CS Koriyama-shi Power Plant

S-15

CS Tsuyama-shi Power Plant

S-16

CS Ena-shi Power Plant

Ena-shi, Gifu

S-17

CS Daisen-cho Power
Plant(A)(B)

Saihaku-gun,Tottori

S-18

CS Takayama-shi Power Plant

S-19
S-20

○

○
○
14 th FP

10,447

8,781

9.9%

27,302.40

40

Chugoku

30-day rule

（Scheduled within
February）

Takayama-shi, Gifu

326

272

0.3%

962.2832

Chubu

360-hour rule○

CS Misato-machi Power Plant

Kodama-gun,
Saitama

470

364

0.4%

1,082.88

32

Tokyo

30-day rule

CS Marumori-machi Power
Plant

Igu-gun, Miyagi

850

694

0.8%

2,194.50

36

TohokuUnlimited andUncompensated
rule

○

8

Asset List – Power Plant Data, Valuation and etc.
No.

Project nameLocation

AcquisitionPrice(million yen)

Valuation Price(million yen)
(Note)

Panel
Output(kW)

S-21

CS Izu-shi Power Plant

Izu-shi, Shizuoka

4,569

3,942

4.4%

10,776.80

S-22

CS Ishikari Shinshinotsumura Power Plant

Ishikari-gun, Hokkaido

680

538

0.6%

S-23

CS Osaki-shi Kejonuma
Power Plant

Osaki-shi, Kejonuma

208

173

S-24

CS Hiji-machi Dai-ni Power
Plant

Hayami-gun, Oita

27,851

S-25

CS Ogawara-machi Power
Plant

Shibata-gun, Miyagi

S-26

CS Fukuyama-shi Power
Plant

S-27

Electric
Power
service area

Curtailment
rules

36

Tokyo

30-day rule

2,384.64

24

Hokkaido

0.2%

954.9921

Tohoku25,92829.2%

53,403.66

40

Kyushu30-day rule

○

2,745

2,492

2.8%

7,515.35

32

TohokuUnlimited andUncompensatedrule○

Fukuyama-shi,
Hiroshima

1,340

1,309

1.5%

3,316.95

40

Chugoku

30-day rule○

CS Shichikashuku-machi
Power Plant

Katta-gun,
Miyagi

3,240

3,558

4.0%

9,213.12

36

Tohoku30-day rule

○

S-28

CS Kama-shi Power Plant

Kama-shi,
Fukuoka

586

594

0.7%

2,242.96

36

KyushuS-29

CS Miyako-machi Saigawa
Power Plant

Miyako-gun,
Fukuoka

5,780

5,771

6.5%

13,011.20

36

Kyushu

S-30

CS Kasama-shi Dai-sanPower Plant

Kasama-shi,
Ibaraki

5,840

5,834

6.6%

13,569.36

32

Tokyo

30-day ruleS-31

CS Yamaguchi-shi Power
Plant

Yamaguchi-shi,
Yamaguchi-ken

230

254

0.3%

1,107.60

18

Chugoku

Unlimited andUncompensatedrule

97,01788,755100.00%226,434.31

-

-

-

Portfolio Total

Portfolio%

FIT Price(yen)

Onlinecurtailment
system status
15 th FP
(Scheduled)

Unlimited andUncompensatedrule
Unlimited andUncompensatedrule

Unlimited andUncompensatedrule
Unlimited andUncompensated
rule

○
○

○
○

○
-

(Note): The term “valuation price ”refers to the intermediate value of power plants whose property numbers in the Asset List on page 12 are S-01 through S-18 estimated by CSIF, based on the valuations of
power plants at the end of Dec. 2023 calculated by PricewaterhouseCoopers Sustainability LLC. As for power plants S-19 through S-30, “valuation price” is the median value calculated by
Kroll, LLC at the end of Dec 2023, and for power plant S-31, “valuation price ” is estimated by CSIF, based on the valuations of power plants at the end of Dec. 2023 calculated by Japan Real Estate
Institute.

9Impact of curtailment and installing online curtailment
controller■ Impact of curtailment on CSIF
6th Fiscal Period(period-ended
Jun. 2020)

7th Fiscal Period(period-ended
Dec. 2020)

8th Fiscal Period(period-ended
Jun. 2021)

9th Fiscal Period(period-ended
Dec. 2021)

10th Fiscal Period(period-ended
Jun. 2022)

11th Fiscal Period(period-ended
Dec. 2022)

12th Fiscal Period(period-ended
Jun. 2023)

13th Fiscal Period(period-ended
Dec. 2023)

Number of days of curtailment

71 days

2 days90 days

22 days

41days7 days93 days

50 daysNumber of times CSIF power
plants underwent curtailment

249

1

206

96

136

24

691

151

58,13095

320,420

91,821

114,722

19,773

857,252

99,4132.47%

0.004%

9.47%

2.46%

3.10%

0.53%

23.24%

2.22%

Estimated variable rent losses(thousand Yen)
Ratio of estimated variable
rent losses to projected rental
revenues

Generally, the number of curtailment tends to increase in early spring when supply and demandslacken.
Although the number of curtailment at power plants subject to the unlimited and uncompensatedrule increased significantly, actual variable rent reduction (vs forecast) are within a certain extent■ Rationale behind installing online curtailment controller
Transition from all-day curtailment to hourly
curtailment with the introduction of online
curtailment controller, it is possible to limit
curtailment to peak hours only

OutputHours subject
to curtailment

Offline output curtailment(all-day curtailment)

OutputCurtailment limited
to peak hours only

Full day output curtailment
regardless of peak hours
7時 8am
8時 9am10am
9時 10時11時12時13時14時15時16時
7am
11am12pm1pm 2pm 3pm 4pm 17時
5pm

Online output curtailment(hourly curtailment)

Time

7時
10時11時12時13時14時15時16時
7am 8時8am 9時9am10am
11am12pm1pm 2pm 3pm 4pm17時
5pm

Time

Reduction of electricity sales loss by installing a curtailment controller■ Promotion of installing online curtailment controller in power plants located in Kyushu

Electric Power Transmission and Distribution Co., Inc. and other distributors

Output curtailment has commenced in many grids across Japan; In addition to Kyushu Electric Power Transmission and Distribution
Co., Chugoku Electric Power Transmission & Distribution Co., Inc. and Shikoku Electric Power Transmission & Distribution Company,
Incorporated as of April 2022, Hokkaido Electric Power Network, Inc. as of May 2022, The Okinawa Electric Power Company, Inc. asof January 2023, Chubu Electric Power Grid Co.,Inc. as of April 2023 and The Kansai Electric Power Company, Inc. as of June 2023.
CSIF has already installed online curtailment controller for solar power plants in Kyushu region, and has been actively installing
online curtailment controllers to other region to reduce negative impact from curtailment.

10Output Curtailment Outlook■

Initiatives to reduce curtailment of renewable energy power output
METI’s “Mass Renewable Energy Introduction / Next Generation Energy Network Committee” convened a meeting in June 21,2023, in which experts agreed to compile new countermeasure packages for the reduction of curtailment of renewable energy
power output within 2023 after broadly discussing possible actions to be taken each for supply, demand and grid.
On December 19, 2023, the subcommittee introduced a “Renewable output curtailment countermeasure package” which outlines
the following.

Demand-side countermeasures
Household sector⚫ Stimulating demand (and transition) by introducing residential solar
battery storage, heat pump water heaters, among others⚫ DR Readiness of equipment (installation of communication control
devices)⚫ Promote consumer behavioral changes to utilize demand-side resources(initiatives to stimulate demand during output curtailment)

Supply-side countermeasures⚫ Further promotion of online conversion of renewable facilities⚫ Lowered minimum output of newly-built thermal plants (50% to 30%),
request existing thermal plants to follow suit
⚫ Lowered output of unregulated power supply in surrounding areas of
sectors that are undergoing output curtailment⚫ Boost operational efficiency of thermal power plants⚫ Optimize output curtailment by utilizing hydroelectric energy⚫ Promote FIP to stimulate renewable energy to better adapt to energy
demand/supply fluctuations in the market

Industrial sector⚫ Grid: Stimulate demand of and transition towards usage of battery
storages, (renewable) adjacent battery storages, and hydrogenelectrolyzers⚫ Corporates: Promote battery storages and provide assistance for
installing communication control devices⚫ Promote DR for furnaces used by energy-intensive industries⚫ Introduce new locations and/or alter demand dynamics for energyintensive industries to adapt to new supply/demand dynamics■

Grid countermeasures
Grid reinforcement⚫ Expand intra-region grid transmission by revamping current
interconnection operations⚫ Expand intra-region grid transmission by reinforcing cross-regional
interconnection lines

Energy market dynamics (medium-long term agenda)⚫ Adjust and stimulate demand/supply through chained price index
mechanism

Initiatives to reduce curtailment of renewable energy power output
Against the backdrop of the lack of timely and accurate disclosures by some electricity transmission and distribution
companies, we submitted a questionnaire and opinion letter to these companies through the Listed Infrastructure Council(formed in Nov. 2023) in order to obtain more transparency.

11

Unit Price Performance◼

Against backdrop of revised FY2023 business forecast and expectations for capital efficiency measures forlisted companies with PBR below 1, the Nikkei Average rallied. However, the TSE Infrastructure Fund and TSE
REIT index were slightly decreased compared to the beginning of 2023 driven by fears of headlines
concerning BoJ’s interest rate hike.

◼

CSIF unit price has remained stable almost in line with the TSE Infrastructure Fund Index
CSIF unit trading volume (right)

CSIF unit price (left)(yen)

TSE Listed Infrastructure Fund Index (left)

Nikkei 225 (left)

165,000

TSE REIT Index (left)(unit)
10,000160,000

9,000

155,000
8,000

150,000

7,000

145,000
140,000

6,000

135,000
5,000

130,000
125,000

4,000

120,000

3,000

115,000

2,000

110,000
105,000

1,000

100,00002023/1
Source:Note：2023/22023/32023/42023/52023/62023/72023/82023/92023/10

Tokyo Stock Exchange, Inc.
Weighted average of listed infrastructure funds, Nikkei average, and TSE REIT Index is benchmarked to CSIF’s closing price as of Jan. 4, 2023
and shows the rate of decline since Jan. 4, 2023.

2023/112023/1212

2. Earnings Forecast

1314th, 15th and 16th FP Earnings Forecast◼ Earnings Forecast
14th Fiscal Period

15th Fiscal Period

16th Fiscal Period(ending June 2024)(ending December 2024)(ending June 2025)

Operating revenues

4,500

4,459

4,445

Operating profit

1,671

1,629

1,641

Ordinary profit

1,404

1,365

1,387

Net profit

1,403

1,364

1,386

3,775 yen

3,775 yen

3,775 yen

3,107 yen

3,020 yen

3,070 yen

668 yen755 yen705 yenDPU (incl. distributions in excess ofearnings)
DPU (excl. distributions in excessof earnings)
Per unit distributions in excess ofearnings

CSIF aims for growth while maintaining a stable level of distribution payout(Note 1) Figures are rounded down to the nearest million yen.
(Note 2) Above forecasts are based on earnings summary dated February 15, 2024 and is subject to change due to factors including without limitation, acquisition orsale of renewable energy projects, changes in infrastructure markets, fluctuation in interest rates and other changes in circumstances surrounding CSIF.
Forecasts do not guarantee any dividend amounts.

14

Historical and Forecasted Dividend◼ CSIF has maintained stable distributions ever since it realized a distribution of JPY3,600 per
unit for the 3rd FP◼ CSIF expects to distribute JPY 3,775 per unit from 14 th FP, an increase of 25 yen from theprevious period and CSIF aims to achieve a stable and sustainable distribution payout by
utilizing distributions in excess of earnings

（yen）

4,500
4,000

3,600

3,500

3,650
577

3,700

3,700

708

601

1,340

3,000
2,500

3,650

3,700

3,750

924

848

3,750

3,750

612
1,156

3,750

3,775

3,775

3,775

683

668

755

705

3,067

3,107

3,020

3,070

13th FP

14th FP

15th FP

16th FP

1,817
3,903

2,000

3,073

1,500
1,000

3,903

2,992

3,099

6th FP

7th FP

2,310

1,783

2,776

2,902

8th FP

9th FP

3,138
2,594

500
0
3rd FP

4th FP

5th FP

10th FP

11th FP

12th FP(Forecast) (Forecast) (Forecast)

DPU (excl. distributions in excess of earnings)(Note)Per unit distributions in excess of earnings

Figures for the 14th~16th Fiscal Period are forecasts and are subject to change. They do not represent guaranteed distribution amounts.

15

3. Management Policy

16Aim for Further Diffusion of Renewable Energy drawing
on Positive Stance of the Japanese Government◼

According to the 6th Basic Energy Plan approved by the Cabinet in October 2021, the government plans to set
the share of renewable energy as the top source of energy. Also, it seeks to approx. double the ratio of renewableenergy (compared to FY2020 actuals, 20%) by FY2030; somewhere between 36%~38% of the total energy mix.

◼

Solar power is expected to compose 14%~16% of the total energy mix. Moreover, installed capacity of solar
power by FY2030 is expected to significantly larger than other renewable energy sources.

Expected installed capacity by renewableenergy source

Ratio of renewables to total energy mix
Renewable energy

Nuclear

LNG

Coal-fired

Oil thermal, etc.

Hydrogen・Ammonia

Expected installed capacity by FY2030 (ambitious goal)

140

The amount of power generation (as of March 2023) (actual)

1%
100%

7%

3%
26%

80%

The amount of power generation (as of March 2020) (actual)

2%

120

117.6

19%
100

32%

Installed capacity of solar power is
expected to exceed that of otherenergy sources

Breakdown of renewables
20%

60%

40%

27%
20~22%

37%

Hydraulic11%

20~22%
20%

6%
18%

0%

FY20192019年度Actual
実績

80

Biomass
5%

36~38%

Solar
14~16%

Wind
5%
Geothermal
1%

22~24%
FY2030 Target
FY2030 Target
2030年度政府目標
2030年度政府目標(2015 forecast) （第6次エネルギー基本計画)(6th Basic Energy Plan)（平成27年見通し）

Source: Compiled by the asset manager based on documents by the Strategic Policy
Committee of the METI Agency for Natural Resources and Energy Advisory Committee
for Natural Resources and Energy

60

14.9
0.1

50.7

40
55.8

23.6

50.0

20
0.9
4.2

0

太陽光
Solar

Wind風力
power

0.6

8.0
2.4
4.5

1.5

地熱
Geothermal

水力
Hydraulic

バイオマス
Biomass

Source: Compiled by the asset manager based on documents by the Strategic Policy Committee of the METI Agency
for Natural Resources and Energy Advisory Committee for Natural Resources and Energy
Note:
The amount of power generation (as of March 2023) (actual) represents the increase from the amount of
power generation (as of March 2020) (actual).

17

External Growth Strategy（Pipeline）(Pipeline including projects owned by Bridge Fund, the numbers are as of December 31, 2023)◼ Target to achieve ¥200 Bn in asset size in the medium term by accelerating acquisitions ofthird-party development projects, in addition to acquisitions from abundant sponsor pipeline
Sponsor-Developed Assets

Third Party-Developed Assets

Total portfolio

19 projects, 345.8MW

2 projects, 47.0MW

21 projects, 392.8MW◼ Pipeline List
Project name

◼ Pipeline snapshot
Location

Panel Output (kW)Developer

Ibaraki11.3

SponsorCS Hiroshima Suzuhari PP

Hiroshima

17.8

SponsorCS Azuma Kofuji PP

Fukushima

100.0

SponsorCS Yamaguchi Hofu PP

Yamaguchi

8.0

Sponsor

CS Gunma Takasaki KG PP

Gunma

24.5

Sponsor

CS Tochigi Kitsuregawa PP

Tochigi

1.2

Sponsor

CS Tottori Daisen Dai-ni PP

Tottori

1.9

Sponsor

CS Gunma Minakami Dai-ni PP

Gunma

2.2

Sponsor

CS Ibaraki Kurusu PP

CS Oita Munechika PP

Oita

8.1

Sponsor

CS Ibaraki Takamihara PP

Ibaraki

1.2

SponsorCS Okayama Shinyubara PP

Okayama

28.8

Sponsor

CS Gunma CC PP

Gunma

21.0

SponsorFukushima

3.0

Sponsor

Aomori

3.0

SponsorCS Miyagi Kami-machi PP

Miyagi

80.0

SponsorCS Shizuoka Gotenba PP

Shizuoka

SponsorCS Nagano Omachi PP

Nagano2.0
3.0

CS Fukushima Ishikawa PP

Fukushima

19.4

SponsorCS Ishikawa Chausuyama PP

Ishikawa

8.9

Sponsor

CS Chiba Sakura PP

Chiba

1.2

Third Party

CS Tochigi Yuzukami Kita PP

Tochigi

45.8

Third Party

CS Fukushima Sabara PP
CS Aomori Maita PP

Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.

SponsorBy size (per asset)
50MW -

2

4

10MW - 50MW

75

5MW - 10MW
2MW - 5MW

3

- 2MW

18

Abundant Pipeline Centered on Sponsor-Developed
Assets Assisting CSIF’s Growth● Operational● Under construction● Under development

CS Aomori Maita PP
3.0 MW/10.89/2024

Lower row in each box ; size (MW)/ FIT
price in JPY/ anticipated COD

Pink box for sponsor development
projects held by bridge Fund

CS Gunma Takasaki KG PP
24.5 MW/14.49/2022
CS Gunma CC PP
21.0 MW/11.99/2026

Blue box for third-party development
projects held by bridge Fund

CS Tottori Daisen Dai-ni PP
1.9 MW/11.49/2024
CS Okayama Shinyubara PP
28.8 MW/13.47/2025

CS Gunma Minakami Dai-ni PP
2.2 MW/18/2023
CS Nagano Omachi PP
3.0 MW/10.14/2025
CS Ishikawa Chausuyama PP（8.9MW/24/2025）

CS Miyagi Kami-machi PP
80.0 MW/10.76/2026
CS Fukushima Sabara PP
3.0 MW/10.79/2024
CS Azuma Kofuji PP
100.0 MW/36/2022
CS Fukushima Ishikawa PP（19.4MW/FIP/2028）

CS Tochigi Kitsuregawa PP
1.2 MW/32/2023
CS Ibaraki Kurusu PP
11.3 MW/24/2022

CS Hiroshima Suzuhari PP
17.8 MW/17.97/2022

CS Ibaraki Takamihara PP
1.2 MW/11.99/2024

CS Yamaguchi Hofu PP
8.0 MW/14.25/2023

CS Chiba Sakura PP（1.2MW/21/2023）

CS Oita Munechika PP
8.1 MW/32/2023

CS Tochigi Yuzukami Kita PP（45.8MW/36/2023）(as of December 31, 2023 : the third-party development assets
are as of the date of the announcement of these financial results.
Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.

CS Shizuoka Gotenba PP
2.0 MW/27/2023

19

CS Azuma Kofuji Power Plant, the largest Sponsor-developed
project, has been transferred to the Bridge Fund◼

Completed transfer of CS Azuma Kofuji Power Plant, the largest (100MW) sponsored development projectin Japan and one of the largest development projects in Japan for which CSIF holds preferential negotiationrights to the Bridge Fund.

◼

Expected to generate approximately 110 million kWh per year, which is equivalent to the electricity
generated by about 31,000 households (September 2022 in operation).

Acquisition flow via bridge fundPrevious owner owning period

Bridge fund holding period

Asset Manager

Previous Owner
Facilities, ID,
Land, Land use rights,
SPCs owned

Transfer

Bridge Fund
(Limited liability
company)

Sale

Basic agreement
CSAM holds preferential
negotiating rights toacquire the asset in the
futureAsset Management
Investment Corporation

CS Azuma Kofuji Power Plant Overview
North 1
Zone

East 1 Zone

North 2
Zone

East 2 Zone

South 1
Zone

West 1 Zone

South 2 Zone

West 2 Zone

⚫ CS Azuma Kofuji Power Plant utilizes abandoned
farmland, and the construction of a large-scale solar
power plant makes a significant contribution to therevitalization and promotion of local farming and fishingcommunities.
⚫ Located in an area where horseradish production isthriving, where high water quality for agriculture isrequired, and a series of water quality tests have been
carried out to eliminate concerns about water pollution
related to the development.

20

Expand pipeline by utilizing the development capabilitiesof the sponsor group◼

Canadian Solar Group has been engaged in development, O&M, and asset management of FIT-eligible solar
power plants from the early stage as well as actively engaging in FIT business operations such as
participating in the FIT auction system and accumulating successful bids.

◼

A total of 15 bids have been conducted since 2017, total capacity of successful bids by Sponsor Groupamounts to 180.358 MW which far surpasses the runner-up which placed a total of approximately 98 MW in
successful bids.
Operational start years and status of Sponsor
Pipeline (panel output basis as of Dec. 31, 2023)
（MW）

稼働済
Operational

建設中
Under
construction

Track record of participation in FIT auction
bidding by sponsor group (as of March 31, 2023)
List of successful bids at FIT auction

開発中
Under development

400

345.8MW350

300

The sponsor group participated in 9 of the 15 FIT auction bidding.
Total capacity of 180.358 MW in successful bids, the highest outof all participants from the 1st to 15th auctions.
（MW）

200
250

180
160

200

140
120

150

100
80

100

60
40

50

20
0

0
Operational
稼働済

2024年
2024

2025年
2025

2026年以降
2026~

累計
Subtotal

スポンサー・

Sponsor
グループ
Group

21

Diversification of sourcing channels and enhancing theflexibility to grow◼

CSIF has been promoting the diversification of its sourcing channels with third parties byleveraging the network of CSAM, CSIF’s asset manager.

◼

CSIF aims for further stable external growth not only by directly acquiring properties from sellers,
but also by using various acquisition means such as the effective use of bridge funds etc.
Diversification of sourcing channels and methods
Methods

Channels

Sponsor network

CSAM’sproprietary
network

Utilize bridge funds

Directly acquiringfrom sellers

Acquisitions through bridge funds
Infrastructure assets that CSIF intends to eventually integrate into the portfolio can be temporarily warehoused in a bridge fund for
CSIF to acquire at an opportune timing.
By utilizing bridge funds, it is possible to (i) adjust the discrepancy in timing between the seller and CSIF transaction requests and(ii) control the number of projects acquired and the scale of acquisitions, resulting in an increase in projects acquisition
opportunities for CSIF

SellerBridge fundPreferential
negotiation rights
granted frombridge fundPreferential
negotiation rights

Able to acquire
projects at afavorable timing
for CSIF

22

Initiatives for Internal Growth■ Tracking information disclosure and expansion of demand for renewable energy
In light of the rapidly increasing awareness of global efforts towards
carbon neutrality amongst Japanese electricity consumers, CSIF will
grant access to tracking information (key information on renewable
Power Plant as specified in the FIT Non-Fossil Certificate) of CS
Daisen-cho Power Plant (A), Daisen-cho Power Plant (B), and CS
Marumori-machi Power Plant for electricity consumers.
At the Electricity and Gas Strategic Policy Subcommittee held in
December 2022, a proposal to raise the minimum price of
renewable energy traded in the Non-Fossil Value Trading Market has
been submitted for panel review. CSIF believes that the need forrenewable energy trading is rising amongst consumers.

（Summary image of tracking information）
Power producers
Wind PP“A”
FIT NonFossil
Certificate

Power producers

Solar PP
“B”

Geothermal“C”

FIT NonFossil
Certificate

FIT NonFossil
Certificate

JEPX Non-Fossil
Value Trading
Market？？

FIT NonFossil
Certificate

FIT NonFossil
Certificate

Wind PP“A”

Solar PP
“B”

Geothermal“C”

FIT NonFossil
Certificate

FIT NonFossil
Certificate

FIT NonFossil
Certificate

FIT NonFossil
Certificate

Electricity retailers (consumers)

Electricity retailers (consumers)■ New Specific Wholesale contracts with Retail Electricity provider
For the following Power Plants, CSIF has reviewed the existing specific wholesale contracts for premium electricity sales
and concluded new specific wholesale contracts for renewable electricity and with retail electricity providers in April 2023
and June 2023.
CSIF believes that it will contribute to the spread of renewable energy and at the same time, contribute to the realizationof internal growth through the recording of additional rental income.
Power Plant

Renewal Period/
Termination of contract

CS Hiji-machi Dai-ni PP
CS Mashiki-machi PP
CS Izu-shi PP
CS Ogawara-machi PP

Renewal for 1 year
after 2 years

Contract Date

Start Date of SpecificWholesale

April 24, 2023

July 1, 2023

June 30, 2023

September 1, 2023

June 30, 2023

September 1, 2023

June 30, 2023

September 1, 2023

23

LTV, Fixed-to-variable interest rate
ratio, DSCR and Credit Rating

Debt Profile (1) –■ Issuer’s ratings

CSIF is the only TSE-listed infrastructure fund rated by both of JCR and R&I as of June 30, 2023.

JCR A（Stable）

R&I A-（Positive）(As of August 17, 2023)(As of August 4, 2023)■ Key financial indicators
CSIF intends to build a stable and strong financial base by maintaining a high fixed interest rate ratio
and keeping an appropriate LTV level.
Average borrowing Interest# of financial institutions

DSCR

As of December 31, 2023

As of December 31, 2023

As of December 31, 2023

0.865%

23

2.12x

Fixed interest rate ratio

LTV
As of June 30, 2023

As of December 31, 2023

48.81%

As of June 30, 2023

52.59%

100.0%■ Historical LTV

3.00

55.52%
53.74%
51.58%

52.59%

51.75%
54.31%

49.78%

49.91%

1.50

50.81%
48.81%

上場時

IPO

第2期

1.30x

1.40x

1.50x 1.60x

1.70x 1.80x

1.90x

2.29x

2.00x
2.11x

2.12x

2.01x

1.00

47.00%

0.50

44.67%
40%

2.49x

2.50
2.00

51.97%

50%
45%

89.8%

■ Historical DSCR

60%
55%

As of December 31, 2023

第3期

第4期

第5期

第6期

第7期

第8期

第9期

第10期

第11期

第12期

第13期

2nd FP 3rd FP 4rd FP 5rd FP 6rd FP 7rd FP 8rd FP 9rd FP 10rd FP 11rd FP12rd FP 13th FP

0.00
th FP
nd FP 3第3期
rd FP 4第4期
rd FP 5rd
上場時
第5期
第10期
第11期
FP12rd第12期
FP 13第13期
IPO 2第2期
FP 6rd第6期
FP 7rd第7期
FP 8rd第8期
FP 9rd 第9期
FP 10rd
FP 11rd24

Debt Profile (2) – Summary of Loans and Bonds■ Overview of Interest-bearing Debts (As of December 31, 2023)
Category

Type

Initial amount(yen millions)

Long
term
Long
term

Long
term
Loan

Bond

Interest
rate type

Drawdown date

Maturity

Floating(Fixed)October 31,
2017

10 years from drawdown date

Base rate plus 0.45%

Floating(Fixed)September 6,
2018

Base rate plus 0.45%

Floating(Fixed)March 8, 2021

Base rate plus 0.45%

July 19, 2023
July 19, 2023

Outstanding(yen millions)Interest rate
Base rate plus 0.45%

15,70010,648(fixed at 0.845% upon executing interest rate swap)

8,000

5,722

(fixed at 1.042% upon executing interest rate swap)

17,00014,141(fixed at 0.8199% upon executing interest rate swap)

Long
term

5,800

5,631

(fixed at 1.2695% upon executing interest rate swap)

Floating(Fixed)

Long
term

5,800

5,631

Base rate plus 0.45%

Floating

JCR Green Finance Evaluation

10 years from drawdown date
10 years from drawdown date
JCR Green Finance Evaluation

10 years from drawdown date
JCR Green Finance Evaluation

10 years from drawdown date
JCR Green Finance Evaluation

Short
term

1,100

1,100

Base rate plus 0.20%

Floating

July 19, 2023

Earlier of (i) July 19, 2024 or (ii)
first interest payment date after
the consumption tax refund date

Long
term

1,100

1,100

0.71%

Fixed

November 6,
2019

5 years from issuance date

Long
term

3,800

3,800

0.80%

Fixed

January 26,
2021

5 years from issuance date

58,30047,776－－－－

Total /
Average

JCR Green Bond Evaluation■ Stable lender formation with a total of 23 banks, including 3 megabanks, SBI Shinsei Bank andSumitomo Mitsui Trust Bank as arrangers/co-arrangers (excl. consumption tax bridge loans)
SBI Shinsei Bank, Limited

15.2%

Sumitomo Mitsui Banking Corporation 13.7%

Total Debt
（41.7bn yen）

Resona Bank, Limited.

2.9%

The TOCHIGI BANK, LTD.

1.5%

The Oita Bank, Ltd.

2.9%

The Senshu Ikeda Bank, Ltd.

1.4%

MUFG Bank, Ltd.

12.8%

The Tottori Bank, Ltd.

2.8%

The BANK OF SAGA LTD.

1.4%

Mizuho Bank, Ltd.

10.7%

The Chugoku Bank, Ltd.

2.7%

The Bank of Nagoya, Ltd.

1.4%

Sumitomo Mitsui Trust Bank, Limited

7.8%

The 77 Bank, Ltd.

2.1%

The Fukuho Bank,Ltd.

1.0%

The Nanto Bank,Ltd.

6.0%

The Ashikaga Bank, Ltd.

1.8%

The BANK OF FUKUOKA., LTD.

0.6%

THE ASAHI SHINKIN BANK

4.2%

ORIX Bank Corporation

1.6%

San ju San Bank,Ltd.

0.3%

The Hiroshima Bank, Ltd.

3.8%

THE SHONAI BANK, Ltd.

1.5%

25

ESG Initiatives (UN PRI・ESG Report)■ Signatory to UN PRI and Formulation of the “Approach to UN PRI Guidelines” by CSAM⚫

■

As of August 13, 2019, CSAM became the first Japanese asset manager
of a listed infrastructure fund to be a signatory to the UN PRI (United
Nations supported Principles for Responsible Investment), as asignatory to the UN PRI, CSAM devised an “Approach to UN PRI
Guidelines”.

ESG Report⚫

CSAM endorsed the TCFD (Task Force on Climate-related Financial
Disclosures) recommendations in February 2022.
CSIF and CSAM published the ESG report in February 2023.

⚫

CSIF selects ESG subjects (materiality) of particular importance to CSIF
and promote efforts to achieve and further improve targets by setting
KPIs and implementing specific measures for materiality items throughfuture activities.

26

ESG Initiatives（TCFD・SFDR）■ The first listed infrastructure fund to conduct disclosures under TCFD guidelines⚫

TCFD was established by the Financial Stability Board (FSB) to promotetransparency on climate-related information disclosures and discuss
implementation methods for financial institutions.

⚫

As of February 14, 2022, CSIF conducts climate-related disclosures inaccordance with the guidelines of the “TCFD Recommendations.

■

Adherence to EU Sustainable Finance Disclosure Regulation (SFDR) Article 8 disclosure requirements⚫

SFDR requires financial market participants to disclose information such as policies regarding consideration ofsustainability risk in investment decisions, and also requires disclosure of information for each of the threeclassifications of financial products, according to the applicable classification of the financial products.

⚫

CSIF conducted SFDR Article 8 disclosure requirements of pre-defined ESG (including Article 8) for “financial
products that promote environmental or social characteristics” factors.
Article 6

Article 8

Other financial products

Financial products promoting
environmental or social
characteristics

Article 9
Financial products designed tosustainable investments

CSIF

27

ESG Initiatives (Green Finance)■ CSIF revised a new Green Finance Framework which obtained a Green1(F) assessment from JCR, thehighest assessment rating as of June 30, 2023.

Assets acquiredin the 3rd PO

1
2

Stakeholders

Reporting onfund allocation
andenvironmental
improvement

IPO acquisitions

3
Acquisitions after IPO

JCR, Shinsei Green
Loan
Assessment
Anticipatedborrowings(Green loan)

Financial
institutions

Borrowings(Green loan)

Financial
institutions

Investment
corporation
bonds (Green bond)

Bond investors

4 Investment unit

Equity investors(Green equity)

Green1(highest JCR evaluation)

Green1(F)(highest JCR evaluation)

obtained a Green1 (the highest rating) assessment from JCR and a Shinsei Green Loan Assessment from Shinsei Bank, Limited (Current SBI Shinsei Bank,
1 CSIF
Limited), which is one of CSIF’s arranger banks, for the borrowings of 17.0 bn yen allocated towards acquisitions during the 8th Fiscal Period (acquired on March 8,2021). In addition, as a result of review by JCR, indicates the continuation of the same Green1 (the highest rating) assessment as of August 17, 2023.
borrowings amounting to 15.7 bn yen which was allocated towards the funds for acquiring the acquisitions for the IPO obtained a Green1 (the highest rating)
2 The
assessment by JCR as of November 22, 2017, based on JCR’s evaluation of the use of proceeds and CSIF’s management / operation / transparency. Also, after anannual review, the borrowings continued to be assessed as Green1 as of August 17, 2023.
And the borrowings amounting to 11.6 bn yen which was allocated towards acquisitions during the 13th Fiscal Period (acquired on July 19, 2023) obtained a Green1(the highest rating) assessment by JCR as of June 30, 2023,

of January 26, 2021, CSIF issued a 5-year Green Bond of 3.8 bn yen, which was given JCR Green1 assessment and the proceeds will be used for the repayment of
3 Asborrowings.
Also, after an annual review, the Bond continued to be assessed as Green1 as of August 17, 2023.
with this offering, CSIF has revised its Green Finance Framework to make it also applicable to the issuance of investment units. CSIF plans to obtain a
4 Simultaneously
third-party evaluation of the revised Green Finance Framework from JCR as of June 30, 2023 for the issuance of investment units as green equity in accordance with
the new Green Finance Framework.

28

Appendix

29

Canadian Solar Group’s Global Operations（1）◼ Key achievements of Canadian Solar Group
Share of shipping
PV modules

2022 Global share

Top 5

Source: PVeye April 2023,
Vis On Press Co.,Ltd.

Bankability#1 PV module
company consideredbankable in 2022
Source: Bloomberg New Energy
Finance“PV Module and Inverter Bankability
2022”

Operational solar
power plants

Solar power plants underdevelopment or
constructionMore than
110 GW

Approx. 26 GW(as of September 30,
2023)(panel output basis as of
September 30, 2023)◼ Canadian Solar Group’s history⚫ Founded in Ontario, Canada in 2001
⚫ Listed on NASDAQ (CSIQ) in 2006

⚫ Entered the Japan market in 2009 and established aproven track record for shipping PV modules⚫ Over 20,000 employees as of June 30, 2023
⚫ More than 110 GW of cumulative solar panels
shipped

94GW以上のソーラーOver 110GW
モジュールを出荷
solar modules shipped

Active buying customers
in more than 160
countries

26 GW project pipeline
36GWを超えるモジュール容量
25GWプロジェクトパイプライン
Module capacity exceeding 51 GW
セル容量は約21.0GW
47GWhエネルギープロジェクト
55 GWh energy project pipeline
Cell capacity approx. 39.0 GW
パイプラインof CSIQ

Subsidiaries in 23 countries& regions on 6 continents

26 manufacturing facilities
in Asia & Americas

30

Canadian Solar Group’s Global Operations（2）Canadian Solar Group’s Global Operations(As of September 30, 2023)

Solar panel factory (including plants under construction in the U.S.)：5 countries
EuropeNorth America
Canada• Guelph： Global HQ• Calgary

Asia PacificSpain
Germany• Madrid: EMEA GE HQ• Munich, EMEA CSIS HQ• Camas• Framlfirt• Barcelona,
U.K.
• Badajoz• London
Italy• MilanPolandFrance• Warsaw• Biarritz
Netherland• Amsterdam

U.S.
• Austin: North America HQ• Mesquite,Texas• Jeffersonville, Indiana• Walnut Creek• New York City

Latin America
Brazil• São Paulo
Mexico• Mexico City
Colombia• Bogota
Chile• Santiago

China
South Korea• Suzhou： China HQ • Seoul• Beijing• Gwangju
India• Changshu• New Delhi• Funing
Thailand• Yancheng• Chonburi• Dafeng
Vietnam• Luoyang• Hai Phong• Baotou
Malaysia• Jiaxing• Kuala Lumpur• Jiuquan
Singapore• Suqian• Singapore• Xining
Australia• Taiyuan• Melbourne• Jinan• Sydney• Guangzhou• Hong Kong, SAR
Taiwan• Hsinchu
Japan• Tokyo• Osaka• Fukuoka• Sendai

Middle East
and Africa

U.A.E• Abu Dhabi• DubaiSouth Africa• Cape Town

Source： The above map was compiled by CSAM based Canadian Solar Inc. Investor Presentation November 2023

31

Value Creation using the Sponsor Group’s VerticallyIntegrated Model (manufacturer, developer, AM・O&M)◼

CSIF operates by fully utilizing the outstanding knowledge that the Canadian Solar Group has accumulated
to date as a total provider of solar power generation as a "vertically integrated model," and considers thecharacteristics of CSIF, including the vertically integrated model, as shown in the figure below.

32Organizational Structure◼

Canadian Solar Group, under its vertically integrated business model, supports CSIF’s PV plant asset
management by integrating its knowhow and expertise accumulated from a broad range of PV businessdomains
Canadian Solar Asset Management K.K.
⚫
⚫

Engaged in asset management in Canadian Solar
Infrastructure Fund, Inc.
Established in June 2016

Canadian Solar Projects K.K.
(Sponsor / Operator)⚫
⚫

Engaged in construction and operation of solar
energy facilities
Established in May 2014

Asset Managemet
Agreements
Asset
Manager
EquityInterest

SponsorSupportAgreements

Investment
Corporation(Fund)(Note)

Solar Energy
Projects

Sponsor /Operator
O&M Service
Agreements⚫

Provides O&M services to solar energy facilities
including our currently-owned projects
Established in June 2016⚫

Sales of PV modules for use in residential andindustrial solar power systems
Established in June 2009

Loan
Agreements

Lenders

Landowners

O&M

Lease / Operation
Agreements

Canadian Solar Japan K.K.
⚫

Investors
EquityLease /
Purchase
Agreements

Canadian Solar O&M Japan K.K.
⚫

Distributions

Asset Managemet
Service Agreements

LesseeOperator
SPC, etc.

Note: In the event that CSIF will acquire trust beneficiary rights, the lessor will be the trustee and will be outsourced to conduct facility operations and O&M operations.

Utilities
PPAs /
Interconnection
Agreements

33

Asset List– Operational Result for 13 th FP(in thousand yen)

Basic Rent

Variable Rent
and Other
Revenues

Rental Expenses(incl. depreciation
expenses)

Depreciation
ExpensesProfits andlosses from therental business

No.

Project name

S-01

CS Shibushi-shi Power Plant

18,7087,240

13,504

9,539

12,444

S-02

CS Isa-shi Power Plant

13,854

5,686

12,260

7,925

7,280

S-03

CS Kasama-shi Power Plant

28,79916,43922,083

14,95623,156

S-04

CS Isa-shi Dai-ni Power Plant

28,60912,50924,444

16,534

16,673S-05

CS Yusui-cho Power Plant

22,952

9,768

21,51914,364

11,201S-06

CS Isa-shi Dai-san Power
Plant

34,07315,75929,26019,971

20,573S-07

CS Kasama-shi Dai-ni Power
Plant

28,422

15,26728,666

18,07715,024

S-08

CS Hiji-machi Power Plant

36,652

19,11932,174

22,166

23,597

S-09

CS Ashikita-machi Power
Plant

36,29013,98630,021

20,306

20,255

S-10

CS Minamishimabara-shi
Power Plant (East & West)64,07029,866

51,59035,41742,346

S-11

CS Minano-machi Power Plant

30,068

10,83923,846

16,212

17,062

S-12

CS Kannami-cho Power Plant

18,084

7,120

15,171

9,671

10,032

S-13

CS Mashiki-machi Power Plant

673,083

273,331481,644

340,453464,769

S-14

CS Koriyama-shi Power Plant

7,427

4,848

6,163

4,193

6,113

S-15

CS Tsuyama-shi Power Plant

21,464

10,86919,94013,161

12,393

S-16

CS Ena-shi Power Plant

25,096

14,014

21,813

14,526

17,29734

Asset List– Operational Result for 13 th FP(in thousand yen)No.

Project name

Variable Rent
and Other
Revenues

Basic Rent

Rental Expenses(incl. depreciation
expenses)

Depreciation
ExpensesProfits andlosses from therental business

S-17

CS Daisen-cho Power
Plant(A)(B)

321,310

184,490

315,777

214,575

190,023

S-18

CS Takayama-shi Power Plant

10,852

16,866

9,816

5,795

17,902

S-19

CS Misato-machi Power Plant

15,068

6,911

11,357

7,603

10,621

S-20

CS Marumori-machi Power
Plant

31,901

15,90429,017

17,05918,788

S-21

CS Izu-shi Power Plant

153,464

74,165

132,375

87,83595,255

S-22

CS Ishikari Shinshinotsu-muraPower Plant

21,19915,847

21,53513,015

15,511

S-23

CS Osaki-shi Kejonuma Power
Plant

6,657

3,880

6,175

3,600

4,362

S-24

CS Hiji-machi Dai-ni Power
Plant

843,148

229,068

639,418

475,621432,799

S-25

CS Ogawara-machi Power
Plant

103,146

43,27982,64454,54563,781

S-26

CS Fukuyama-shi Power Plant

53,301

21,53036,276

21,05938,555

S-27

CS Shichikashuku-machi Power
Plant

120,630

69,53889,26453,392

100,904

S-28

CS Kama-shi Power Plant

27,4302,234

13,362

10,62916,301S-29

CS Miyako-machi Saigawa Power
Plant

175,496

50,94985,64568,880140,801

S-30

CS Kasama-shi Dai-san Power
Plant

141,360

68,896

101,015

82,793

109,241

S-31

CS Yamaguchi-shi Power Plant

696

312

823

529

185

3,100,065

1,437,856

2,414,802

1,694,467

2,123,120

Total

35

ESG Initiatives（Environment）◼ In consideration of the environment, CSIF and the Canadian Solar Group contributes to theutilization of renewable energy through renewable energy investments.
◼ Incorporate measures to reduce environmental impact from manufacturing solar panels⚫

The Canadian Solar Group is focused on reducing the environmental impact from solar panel manufacturing
processes such as greenhouse gases and industrial waste water and have achieved the following reductions in
our environmental
impact from 2017 to 2022.
Reduction of greenhouse gas
emissions (/ MW)2017

Approx.

153 ton-20%

Reduction of industrial water
consumption (/ MW)

2022

2017

Approx.

Approx.

123 ton2,249 ton

2022

-67%

Approx.

750 ton

出所： 「Sustainability Report 2022」 (Canadian Solar Inc.)◼ Environmentally-conscious development and operation of CS Daisen-cho Power Plant⚫

Given that Mount Daisen located near CS Daisen-cho Power Plant owned by CSIF, is in close proximity to an
ecosystem rich with forests, plants and wild birds, the Sponsor made efforts to refrain from using chainsaws when developing the project to avoid damaging the habitat of rare species of indigenous falcons aswell as painting the fence around the site using camouflage colors.

36

ESG Initiatives (Social)◼ Canadian Solar Group's relationship with local communities at Hiji-machi⚫

CSAM is sponsoring the Xavier‘s Way Walking in Hiji-machi,
where CS Hiji-machi Power Plant and CS Hiji-machi Dai-Ni
Power Plant are located. In 2023, CSAM employees participatedin this event, which is a walk along a historic trail that Francisco
Xavier is said to have passed through.

◼ Canadian Solar Group’s relationship with the local community around CS Daisen-cho⚫

The Sponsor constructed the Daisen Canadian Garden and donated it to the Daisen-cho Town Government incommemoration of the completion of CS Daisen-cho Power Plant, now owned by the CSIF after development, and as partof its contribution to local communities in an effort to create harmony between nature and the large-scale solar power
plant. In addition, it repaired the Hima Jinja Shrine in the same town and donated an incense holder made of white
granite to the Shimpukuji Temple.

Repaired the Hima Jinja Shrine

Donated an incense holder made of white granite to
Shimpukuji Temple

In the Daisen Canadian Garden, there is amonument created in the motif of the local mountain,
Mt. Daisen.

◼ Donation to Marumori-machi, Igu-gun, Miyagi prefecture where CS Marumori-machi is located⚫

The sponsor and CSAM offered donations to the Marumori-machi Town Government. The town was severely hit by
Typhoon Hagibis in October 2019.

37

ESG Initiatives (Governance)◼ Aligning the interest of unitholders with that of the Sponsor⚫

CSIF aims to increase unitholders’s value by aligning the interest of unitholders with that of the sponsor.

Number of units held by the sponsor and holding ratio:
65,672 units 14.53%◼ Decision-making Procedures for Asset Purchase and Transfer Transactions with Related Parties⚫

CSAM has implemented measures in the Regulations for Related-Party Transactions to limit adverse effects inconnection with transactions with related parties such as Canadian Solar Group companies where conflicts ofinterest are highly likely to emerge.
Decision-Making Structure Concerning Transactions with Related Parties in connection with Asset Acquisitions and Transfers
Transactions with related parties(such transactions worth 5 bn yen or more)

Transactions with related parties(other transactions)

Drafting of asset acquisition and other plans by the Investment
Management Department

Drafting of asset acquisition and other plans by the Investment
Management Department

Approval by the Chief Compliance Officer(confirmation of the presence or absence of compliance problems including
the state of compliance with laws and regulations)

Approval by the Chief Compliance Officer(confirmation of the presence or absence of compliance problems including
the state of compliance with laws and regulations)

Send
proposalback

Deliberation and resolution by the Compliance Committee

Deliberation and resolution by the Compliance Committee
Rejection andsend proposalbackDeliberation and resolution by theInvestment Management Committee
Deliberation and resolution by the Board of Directors of the AssetManagerApproval by the Board of Directors of the Investment Corporation
and Agreement by the Investment Corporation

Send
proposalback

Rejection andsend proposal
back
Rejection andsend proposal
back

Rejection andsend proposalbackDeliberation and resolution by theInvestment Management Committee
Approval by the Board of Directors of the Investment Corporation
and Agreement by the Investment Corporation

Rejection andsend proposal
back
Rejection,
disagreement
and send
proposal backReport to the Board of Directors of the Asset Manager
Rejection,
disagreement
and send
proposal back38

Status of Unitholders◼ Unitholding (as at period-ended December 2023)◼ By unitholding amount# ofInvestment
units:
451,756◼ By unitholders■Individuals / others■Financial institutions(incl. financial instruments firms)

247,753（54.84%）
62,406（13.81%）■Domestic Corporates

98,246（21.74%）■Foreign entities & individuals

43,351 （9.59%）

Name

# of
Unitholders:
20,163■Individuals / others■ Financial institutions

19,594（97.17%）(incl. financial instruments firms)■ Domestic Corporates

364 （ 1.80%）■ Foreign entities & individuals

153 （ 0.75%）

Number of investment
units held (units)

Unitholding ratio to total
issued units (％)

1

Canadian Solar Projects K.K.

65,672

14.53%

2

THE BANK OF NEW YORK MELLON SA/NV 10

7,919

1.75%

3

The Bank of Fukuoka, Ltd.

7,830

1.73%

4

SSBTC CLIENT ONMIBUS ACCOUNT

6,164

1.36%

5

Custody Bank of Japan, Ltd. (Trust Account)

5,877

1.30%

6

JP MORGAN CHASE BANK 385650

5,660

1.25%

7

THE BANK OF NEW YORK 133522

4,612

1.02%

8

The Master Trust Bank of Japan, Ltd.

4,354

0.96%

9

Individual investor

4,210

0.93%

10

JP MORGAN CHASE BANK 380646

4,087

0.90%

116,385

25.76%

Total(Note): Unitholding ratio is rounded down to the nearest hundredth.

52 （ 0.25%）

39

Balance Sheet for 13 th FP◼ 13th Fiscal Period (ended December 2023)◼ Assets(in thousands of yen)

Current assets

Cash and bank deposit
Operating accounts receivable
Accounts receivable
Prepaid expenses
Consumption tax receivable
Other current assets

5,911,425
946,740

337,251
1,385,163
40,8008,621,381

Total current assets

Structures

Accumulated depreciation

1,074,228△236,994
837,233

Total structures (net)43,317,800

Machinery and equipment△9,964,984

Accumulated depreciation
Total machinery and equipment (net)
Tools, equipment and supplies
Accumulated depreciation

33,352,815
592,466△138,582
453,884

Total tools, equipment and supplies (net)Land

4,570,689

Construction in progress
Structures in trust

7,923,918

Accumulated depreciation△706,649
7,217,268

Total structures in trust (net)33,005,488

Machinery and equipment in trust△2,599,626

Accumulated depreciation
Total machinery and equipment in trust (net)
Tools, equipment and supplies in trust
Accumulated depreciation
Total tools, equipment and supplies in trust (net)Land in trust
Total property and equipment

30,405,862
134,095△11,544
122,550
6,948,625
3,751
83,912,681

Intangible assets
Leasehold rights
SoftwareTotal intangible assets

Deferred assets
Investment corporation bond issuance cost
Total deferred assets
Total assets◼ Liabilities and Net Assets

Fixed assets
Property and equipment

Investments and other assets
Long-term prepaid expenses
Capital investments
Deferred tax asset
Long-term deposits
Guarantee deposits
Total investments and other assets
Total fixed assets

1,486,690

2,176
1,488,866

914,460
10
16
23,40046,909984,797
86,386,345
9,361
9,361
95,017,088(in thousands of yen)

Current liabilities
Operating accounts payable
Short-term borrowings
Long-term borrowings to be repaid within 1 year
Investment corporation bond to be repaid within 1 year
Accounts payable
Accrued expenses
Income taxes payable
Consumption taxes payable
Deposits received
Total current liabilities
Fixed liabilities
Investment corporation bondLong-term borrowings
Long-term Accounts payable
Total fixed liabilities
Total liabilities
Unitholders’ equity
Unitholders’ capital
Amount deducted from Unitholders’ capital
Unitholders’ capital (net)
Surplus
Unappropriated retained earnings(accumulated deficit)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

100,930
1,100,000
2,900,480
1,100,000
233,455
111,268
954
48,654
16,424
5,612,168
3,800,000
38,876,005
71,21542,747,220
48,359,388
47,953,452△2,681,476
45,271,976
1,385,723
1,385,723
46,657,699
46,657,699
95,017,088

40

Statement of Income for 13 th FP◼ 13th Fiscal Period (ended December 2023)(in thousands of yen)
Operating revenues
Rental revenues

4,537,922

Total operating revenue

4,537,922

Operating expenses
Rental expenses of renewable energy projects

2,414,802

Asset management fee

168,639

Administrative service fees

28,023

Director’s compensation

2,400

Tax and dues

3,108

Other operating expenses

73,957

Total operating expenses

2,690,932

Operating profit

1,846,990

Non-operating income
Interest income

32

Gain on forfeiture of unclaimed dividends

648

Compensation income

688

Others285
1,654

Total non-operating income
Non-operating expenses
Interest expenses

183,994

Interest expenses on investment corporation bond

19,262

Amortization of investment corporation bondissuance expenses

2,779

Borrowing-related expenses

213,085

Investment unit issuance expenses

42,181

Loss on retirement of fixed assets

653
461,954

Total non-operating expenses
Ordinary income

1,386,688

Income before income taxes

1,386,688

Income taxes
Income tax adjustments

Total income taxes
Net income
Profits brought forward
Unappropriated retained earnings(accumulated deficit)

959
55

1,014
1,385,673
49
1,385,723

41

Portfolio Assets (1)S-01 CS Shibushi-shi
Power Plant 1.2MW

S-02 CS Isa-shi
Power Plant 0.9MW

S-03 CS Kasama-shi
Power Plant 2.1MW

S-04 CS Isa-shi Dai-niPower Plant 2.0MW

S-05 CS Yusui-cho
Power Plant 1.7MW

S-06 CS Isa-shi Dai-sanPower Plant 2.2MW

S-07 CS Kasama-shi Dai-niPower Plant 2.1MW

S-08 CS Hiji-machi
Power Plant 2.6MW

S-09 CS Ashikita-machi
Power Plant 2.3MW

S-10 CS Minami Shimabara-shi
Power Plant (East & West) 3.9MW

S-11 CS Minano-machi
Power Plant 2.4MW

S-12 CS Kannami-cho
Power Plant 1.3MW

42

Portfolio Assets (2)S-13 CS Mashiki-machi
Power Plant 47.7MW

S-14 CS Koriyama-shi
Power Plant 0.6MW

S-15 CS Tsuyama-shi
Power Plant 2.0MW

S-16 CS Ena-shi
Power Plant 2.1MW

S-17 CS Daisen-choPower Plant (A&B) 27.3MW

S-18 CS Takayama-shi
Power Plant 1.0MW

S-19 CS Misato-machi
Power Plant 1.1MW

S-20 CS Marumori-machi
Power Plant 2.2MW

S-21 CS Izu-shi
Power Plant 10.7MW

S-22 CS Ishikari
Shinshinotsu-muraPower Plant 2.3MW

S-23 CS Osaki-shi Kejonuma
Power Plant 0.9MW

S-24 CS Hiji-machi Dai-niPower Plant 53.4MW

43

Portfolio Assets (3)S-25 CS Ogawara-machi
Power Plant 7.5MW

S-26 CS Fukuyama-shi Power
Plant 3.3MW

S-27 CS Shichikashuku-machi
Power Plant 9.2MW

S-29 CS Miyako-machi Saigawa
Power Plant 13.0MW

S-30 CS Kasama-shi Dai-sanPower Plant 13.6MW

S-31 CS Yamaguchi-shi Power
Plant 1.1MW

S-28 CS Kama-shi Power Plant
2.2MW

44

Distributions based on stable cash flow
under the FIT system⚫

Solar power plants that CSIF invests in have a fixed procurement price and period under a feed-in tariff(FIT system), and since the projects under CSIF’s ownership are structured to secure basic rents, CSIF
believe that potential declines in rental revenue is limited.
Structure of electricity sales revenue (source of basic rent and variable rent)
that is less susceptible to economic fluctuations
Electricity
sales revenue

FIT Price

Power generation (power generation
output x the amount of solar radiation)

Generate stable
cash flow

Guaranteed by Japanese Government to sellelectricity at a fixed price for 20 years

Reduce the impact of weather fluctuations bybalancing power generation through regional
diversification

Calculation method of basic rent and variable rent of projects under management and Anticipated acquisitions
Basic rentMonthly projected energy output (P50) ×(100－Y)%
× 70% × FIT purchase price

Even if actual energy output is lower than 70% of projectedenergy output (P50), the operator will be able to receive basic
rent from lessee

Variablerent(Monthly actual energy output × (100－Y)% × FIT
purchase price) － Basic rent

If actual energy output exceeds 70% of projected energy output(P50), possible to obtain variable rent

Diagram of rent structure45

Cash Management Policy⚫ CSIF aims to use free cash flow (FFO) generated during the interim from renewable power
production to allocate towards net income (distribution from profit), distribution in excess ofearnings, and debt repayment
Capitalexpenditure◼ Current cash management policy
Debt
repayment(cash flow for
debt investors)

Total FFO is currently roughly equivalent to
distributable cash and total debt repayment
amount. Depending on the final amount of
distribution in excess of earnings, it may bedifficult to reserve sufficient funds for future
capital expenditures, with the amount ofcash generated during the interim.

Depreciation
FFO
Distribution inexcess of
earnings
Total distribution

Net income

Net income ＝Distribution from profit

Distribution
from profit（fluctuates
depending total
revenue）

Going forward, CSIF intends to reduce total
distributions in excess of earnings byincreasing EPU (earnings per unit) throughliquidity events such as acquisitions toincrease the ratio of EPU within the total
distributable amount per unit

FFO(Funds from Operation)=Net income + Depreciation ± Gain / Loss on sales of renewable energy power plants
Note: The chart above is presented solely to facilitate a general understanding of the mechanism for cash distributions, and does not represent the ratio of our rental revenues or cash distributions inexcess of retained earnings. CSIF may decide not to make any amount of cash distributions in excess of retained earnings for a particular fiscal period, based on a consideration of factors such as
economic or renewable energy market conditions or financial conditions, among other factors, after taking into account of our financial situation and alternative uses of cash, such as the execution of
repair plans and capital expenditures, the repayment of borrowings and project acquisition opportunities. CSIF may, in place of making cash distributions in excess of retained earnings, decide toacquire our own units.

46

Long-term Profitability Schematics■ CSIF Profitability Schematics
 Since the repayment of borrowings will finish once the Fit period expires, it is possible for a certain amount ofcash to be secured for distribution. After the asset is fully depreciated (and depreciable asset tax is no longer
levied), net income will increase equivalent to the depreciable cash amount.
 Rent income will decrease once the FIT period expires. Upon expiry, it is anticipated that the drop in electricity
sale price will be covered to a certain extent by increases in sale price by swiching to corporate PPA to stabilize
electricity rates, increasing panel output through repowering solar panels, and installing battery storage systems.
FFO(Funds from Operation)＝Net income + Depreciation ± Gain / Loss on sales of renewable energy power plants

Revenue decline due to FIT expiry
Net income
FFO based on
FIT income

Depreciation

First fiscal FIT year

Distribution inexcess of
earnings

FFO based on
post-FIT PPA
incomeDebt
repayment
20th year FIT
expires
Debt repaid

20th-30th year asset
fully depreciatedExpected lifetimeof panels

DPU funding source
DPU=Distribution from profit＋
Distribution in excess of earnings

DPU=Distribution fromprofit47

Operating revenue / expenditure structure
for long-term and stable forecasts⚫

It is relatively easy to produce long-dated and stable P/L forecast because CSIF has rent revenue supportedby the FIT system and a large proportion of fixed expenses.

⚫

Assuming that CSIF purchases solar power plants with neither additional purchase nor disposition, its
operating revenue, operating expenses and non-operating expenses shall follow the general trend below
during the FIT period. Hence, CSIF understands that CSIF’s current income is to gradually increase over the
medium- to long-term during the FIT period.

Dynamics of solar power plant revenue during FIT period
AmountOperatingrevenues

Operating revenues generally decrease
gradually over the medium to long term due
to expected degradation of PV modules.

Operatingexpenses

Depreciable asset tax, a large expense
component, decreases due to a straight-linebased depreciation, so operating expenses
generally decrease gradually over the
medium to long term, under the assumptionthat expenses other than taxes on
depreciable assets be largely fixed (including
assumed regular maintenance costs).

Nonoperating
expenses

Amortization payments of loan principal andinterest rates that are partially fixed
generally cause non-operating expenses todecrease gradually over the medium to longterm given typical amortization schedules, asthese payments are the primary componentof nonoperating expenses.

Operating revenues
Operating expenses

Net income
Non-operating expenses

Time
Note: The chart above is presented solely to facilitate a general understanding of the theory management considers in approaching the business of solar energy projects during the FIT
period term. The chart assumes the continuous operations of solar energy projects during the FIT period term under normalized conditions, with no extraordinary events, including
additional acquisitions or dispositions of projects, or expenses or changes in the operating or regulatory environment. Actual results may vary significantly depending on theparticular features and circumstances of infrastructure funds, as well as unexpected events or changes or the realization of various risks. You should not rely on this model to predict
the outcome of our operating revenues, operating expenses, non-operating expenses or net income.

48

Overview of curtailment⚫ In order for electric power companies in each region to stabilize the supply of electricity, each company curtails the output of
power generators to control supply in the event that the supply of electricity in its grid largely exceeds demand.
⚫ Output curtailment of each energy source is implemented according to the priority electric supply dispatch rule. According to thisrule, solar energy output is curtailed after thermal and biomass energy generation, pumped-storage hydroelectric energy
generation, charging of storage batteries for adjusting supply and demand, and electricity is supplied outside the area throughinterconnection.
⚫ Furthermore, output curtailment is equally distributed by introducing a rule that sets the priority of output curtailment by group.
By reducing the burden of output curtailment on all solar power plants, it is expected that output curtailment will be equallydistributed even if solar power plants installed with curtailment controllers will be curtailed less than solar power plants without
curtailment controllers.

◼ Rules on output curtailment◼ Generic output curtailment scenario~Priority electric supply rule (Order of output curtailment)~
Curtail thermal, pumped-storage hydroelectric energy generation charging of

1 storage batteries for adjusting supply and demand

Volume ofgenerated electricity

2 Supply electricity outside the area through interconnection

Curtailment of solar
and wind generators

3 Curtailment of biomass energy generation
4 Supply curtailment of local biomass energy generation
Curtail natural variable renewable energy generation

5 (solar and wind power)

Instruction provided by Organization for Cross-regional Coordination of

6 Transmission Operators

Electricity
demandCurtailment of long-term fixed power source energy generation (nuclear,

7 hydro and geothermal power)

Thermal power generation adjusted to the output
levels of solar and wind power
Geothermal and hydroelectric power generation(excluding pumped-storage hydroelectric power generation)
Nuclear power
Midnight

Morning

Noon

Afternoon

Midnight

Output curtailment volume~Concept of output curtailment by group~Group EGroup GGroup B

Group DGroup GGroup B

Group AGroup CGroup F

Group AGroup E

Day 1

Day 2

Day 3

Day 4

Day X

…

Group F

Source: Compiled by CSAM based on the “Operational Policy on Power Transmission and Distribution” by theOrganization for Cross-regional Coordination of Transmission Operators and “Guideline on Fairness of
Output Curtailment (formulated on March 2017, amended October 2019, April 2021 and April 2022)” by
METI’s Agency for Natural Resources and Energy

49Capacity increase of cross-regional interconnection lines
to reduce curtailment⚫

The Organization for Cross-regional Coordination of Transmission Operators (“OCCTO”) is planning to increase thecapacity of interconnection lines between Hokkaido and Tohoku, Tohoku and Tokyo, and Chubu and Tokyo.
Construction is scheduled to be completed during FY2027.

⚫

Also, the OCCTO is discussing plans to expand the grid between the Kyushu and Chugoku region as well as the Chubu
region and Tokyo, in addition to a new underwater power cable connecting the Hokkaido and Tokyo grids. With suchnew capacity, CSIF believes this will lead to a reduction in curtailment.
Existing grid
(past 10 yrs.)
Under construction
Additional capacity(planned)

50Hz

1.2 million kW
Hokkaido – Tokyo(new build)

Approx. 20 million kW

Hokkaido

6 – 8 million kW(underwater power cable)

Hokkaido - Tohoku
Hokkaido - Tohoku

Kyushu – Chugoku(increased capacity)

2.78 million kW→
5.56 million kW
Kyushu - Chugoku

0.6 million kW→
0.9 million kW

Increased capacity for
Chubu and Kansai
regions(as of March 2019)

Hokkaido – Tohoku

Hokuriku
Chugoku
Kyushu60Hz

0.9 million kW→
1.2 million kW

Tohoku - Tokyo(by FY2027)

Hokuriku - Chubu
Tohoku - Tokyo

Chubu - Tokyo
Frequency converter
stationKansai

Chugoku Shikoku

Chubu

Shikoku

Okinawa

TohokuChugoku - Kansai Kansai - Hokuriku

Shikoku - Kansai

5.5 million kW→
10.28 million kW(by FY2027)

Tokyo

Kansai - Chubu

Chubu - Tokyo

Chubu – Tokyo

Chubu - Tokyo

1.2 million kW→2.1 million kW(as of March 2021)

2.1 million kW→3 million kW(by FY2027)

3 million kW→5.7 million kW

50

Main Points of the Revised Renewable Energy Act（1）◼ Overview of FIP system

The FIP system allows for the sale of electricity to the wholesale market and arms length transactions as well as paying a premium, thespread between the designated standard price and market price.
Under the FIP system, buyers are not limited to power distributors of large utility companies and retailers. In addition, the purchaseprice fluctuates depending of the time of day.

⚫
⚫

Revenue dynamics of FIP system
Revenue aftersubsidy

Anticipated revenue after subsidy(designated standard pricea.k.a. FIP price)*pre-determined

Difference between FIT and FIP
FIT⚫ Power purchased at fixed price⚫ Buyers are power distributers oflarge utility companies

FIP⚫ Receive subsidy calculated based onmarket price⚫ Buyers are wholesalers and retailers

Power producer

Power producer

Premium
Anticipated revenue frommarket transaction(reference price)

Market price

Designated standard price - Reference price =*linked to fluctuations in
expected revenue frommarket transactions

Aggregator

TSO(Top utilities)

Wholesale market

Premium

Wholesale market

Corporate PPA

Reference method for anticipated revenue (reference price) of market transactions, etc.,
and flow of premium allocation⚫

Determination of the average market price for the previous year
－ Calculate the one-year weighted average of spot and pre-market prices by area, taking into account power generation characteristics.

⚫

Determination of the unadjusted premium unit price for the current month－Calculate using the formula: “annual average market price for the previous year + monthly adjusted price (= monthly average market price for the current year - monthly
average market price for the previous year)”⚫

Determination of adjusted premium unit price for the current month－Calculate using the formula: premium unit price before adjustment for the current month × total electricity supply for all areas by power source for the current month (incl.
0.01 yen/kWh time slot) divided by total electricity supply for all areas by power source for the current month (excl. 0.01 yen/kWh slot)⚫

Determination of the amount of premium for the current month－Calculate using the formula: adjusted premium unit price for the current month x electricity supply* in the FIP business for the current month(* Amount of renewable electricity generated by certified power generation facilities and supplied on the market during the current month (excl. 0.01 yen/kWh slot )To be determined after taking into account other factors, including premium during the curtailment time, values outside the wholesale electricity market, balancing costs,
rules on aggregation business and requirements for shifting FIT to FIP
Source: Agency for Natural Resources and Energy website
Note: TSO stands for Transmission System Operator.

51

Main Points of the Revised Renewable Energy Act（2）⚫ Detailed rules and procedures were announced by combined meetings under the leadership of Agency for
Natural Resources and Energy (ANREA) in February of 2021. Since then, various systems to start in April 2022
have been discussed until December 2021.
◼

Regulation to maintain cash reserve for power plant demolition costs

Categories subject to the cash
All PV operations with FIT/FIP certificates of more than 10 kW or morereserve system
Cash reserve method

In principle, PV operators with FIT/FIP certificates put cash reserve for demolition cost on OCCTO by withholding such cash reserve fromincoming electricity revenue. Exceptionally, cash reserve within PV operators shall be permitted under certain conditions⇒ For listed infrastructure funds internal, cash reserve was permitted as meeting certain requirements above

Cash reserve period

For ten years prior to the end of the FIT period with a monthly frequency

Cash reserve amountFor accredited solar power plants whose procurement prices have already been determined by FY2019, the reserve amount is the level ofassumed costs for decommissioning, etc. in the procurement price calculation determined by the Procurement Price Calculation Committee◼ Non-operational PV Project : Automatic Cancellation of FIT Certificate⚫
⚫

Shall judge the progress status such as application for grid connection work in one year after the operational deadline in case of PV which
has an operational deadline after April 1, 2022
Shall judge the progress status in one year after April 1, 2022 in case PV of which operational deadline is delayed as of April 1, 2022

FIT/FIP Act “Nullification Rules (Shikko-seido)”
Scenario-1: Legislation
date prior to cut-off
deadline
Operational
periodRule-1Rule-2Rule-3(exception)

FIT approval

Operational
periodFIT approval

Caution: Cut-off deadline for non-solar
projects that received FIT approval
between FY2012~2017 is determinedbased on a benchmarked date
(December 1, 2020).

Cut-off
deadline

Scenario-2:
Cut-off deadline
expired as of legislation
date

Legislationdate

1 year (as of one year after the cut-off deadline, an ICCA (interconnection constructioncommencement application) is not submitted)
Approval nullified
End of operational period (as of one year after the cut-off deadline, an ICCA is
submitted)
Approval nullified
FIT period expiry (as of one year after the cut-off deadline, an ICCA is submitted
and METI has confirmed the construction plan notice)
Approval nullified
after FIT period
expiration

Cut-off
deadline

Rule-1Rule-2Rule-3(exception)

Duration of approvaldate to completiondate

1 year(as of one year after completion, an ICCA is not submitted)
Approval nullified

FIT approval

Deadline expiry

Duration of approvaldate to completiondate
FIT approval

Deadline expiry

End of operational period (as of one year after completion, an ICCA is
submitted)
Approval nullified
FIT period (as of one year after completion, an ICCA is submitted and METI
expiryhas confirmed the construction plan notice)
Approval
nullified after FIT
period expiration

52

Main Points of the Revised Renewable Energy Act（3）◼ Discussions on Wheeling Charge⚫

Concerning the regulation on the Wheeling Charge where power producers (including renewable energy producers)
must bear 10% of consignment charges which the retailer previously paid the full cost, a proposal to exempt wheelingcharges on FIT/FIP-certified projects until after the FIT period expires has been submitted.
•

In addition to levy methods and detailed calculation methods, discussions on the Wheeling Charge on existing FITcertified projects were held. However, at the “Mass Renewable Energy Introduction / Next Generation Energy Network
Committee” held in December 2021, the government ultimately decided to reach a decision during FY2022 with thecommon understanding that the effective date will be postponed from FY2023 to FY2024.

•

At the “Mass Renewable Energy Introduction / Next Generation Energy Network Committee” held in November 2022,
the members decided that careful discussions on how to regulate FIT energy sources without interrupting the growthof renewable energy. Considering the burden on the Japanese citizens a motion to either allow installment payments orcompletely exempt the Wheeling Charge on existing FIT/FIP-certified projects has been submitted.

•

Finally, the aforementioned committee held in December 2022 decided that the Wheeling Charge are exempt forexisting FIT/FIP projects during their respective FIT periods. After receiving public comments on this new regulation in
April 2023, is scheduled to be effective as of FY2024.

•

In December 2023, each electricity transmission and distribution companies submitted an application to the Minister of
Economy, unit price of Wheeling Charge. The rate system expert meeting is currently verifying whether the content of
the application is in accordance with laws, ministerial ordinances, etc.

Summary of the detailsof Wheeling Charge

Scheme of Wheeling Charge (All of CSIF's assets are already FIT-certified projects)
Wheeling
ChargePower Producers

Consignment
ChargeGrid operators
10%

Utilities bill

Retailers

End Users

90%

Policy to be organized under the basic concept of thatthe reduction of consignment charge due to the introduction of “Power Producer-side Wheeling
Charge” should be appropriately borne by the power producers.

53

Disclaimer• This document has been prepared to provide information, and is not for soliciting and inviting investments in or recommendingtransaction of certain products. We request investors to make investments with their own responsibility and judgment.
• This document does not constitute a disclosure document or a management report based on the Financial Instruments andExchange Act, the Act on Investment Trusts and Investment Corporations or the listing regulations of the Tokyo Stock Exchange.
• In addition to information on Canadian Solar Infrastructure Fund, Inc. (the "Investment Corporation"), this document includes
figures, tables and data prepared by Canadian Solar Asset Management K.K. (the "Asset Manager") based on data/index and otherinformation released by third parties. Analysis, judgment and other views of the Asset Manager on such information at the time of
preparation are also included in this document.
• The information contained in this document is not audited and there is no assurance of the accuracy and certainty of suchinformation. Analysis, judgment and other non-factual views of the Asset Manager represent views of the Asset Manager at thispoint in time. Different views may exist or the Asset Manager may change its views in the future.
• Figures under the same items of other disclosed materials may differ from figures presented in this document due to difference inthe rounding of fractions, etc.
• While the Investment Corporation takes reasonable care in the preparation of this document, there may be errors. Readers arealso cautioned that the contents of this document may be corrected or changed without prior notice.
• The Investment Corporation and the Asset Manager assume no responsibility for the accuracy of data, indexes and otherinformation released by third parties.
• This document includes statements regarding future policies, etc. of the Investment Corporation. However, these statements do notguarantee said future policies, etc.
• For the convenience of preparing graphs, the dates indicated herein may differ from actual business dates.

54